Strate’s regulator, the Financial Services Board (FSB), has approved the amendments to the Central Securities Depository (CSD) Rules to have them aligned to new legislation.
“Following the implementation of the Financial Markets Act, 2012 (FMA), the CSD Rules had to be adjusted to align to the new legislation as well as to the National Payment System Act and the Insolvency Act,” explains Maria Vermaas, the Head of Strate’s Legal & Regulatory Division.
She explained that the section relating to Duties of Participants (within Section 5) had to be revised to include additional clauses, while the Accounts section (Section 6) was also modified to provide further clarity on the irrevocability of settlement instructions.
New sections have been added to the amended CSD Rules (Sections 15 and 16 respectively) for Complaints Procedures and Procedures for Management of Participant’s Insolvency Proceeding. While the amended CSD Rules became effective the day they were published in the official Government Gazette, being 14 February 2014, there are a number of clauses that will only take effect on 13 May 2014. These are clauses 5.1.6, 5.1.8, 5.7.1 and 5.7.3.
The revised CSD Rules are available on the Regulatory Environment section of Strate’s website. Click here
to view the CSD Rules.